VICTORIA — For a government that sought re-election on the promise, blazoned on the side of the campaign bus, of a “Debt-Free B.C.,” the public accounts released this week provide a sobering reality check.

Total provincial debt as of March 31, the end of the last financial year: $60.693 billion.

Total provincial debt inherited by Christy Clark when she took the oath of office as premier in mid-March 2011: $45.154 billion.

Increase: $15.539 billion, or 34 per cent.

So in round numbers, the provincial debt has been growing by about $5 billion a year on Clark’s watch, for an increase of about one third overall.

To what end?

The breakdown in the public accounts shows that the Clark-led Liberals have added about $3.2 billion in debt to cover shortfalls on the operating side, meaning the cost of providing programs and services on an annual basis.

But there’ll be no need of that any more, now that the budget is balanced (indeed in surplus to the tune of $350 million) on the operating side.

The rest of the new debt, meaning most of it, was incurred to cover the cost of capital construction, meaning roads, bridges, schools, hospitals and other public infrastructure projects built and paid for over the long term.

Heading the list on the capital side was almost $4 billion in borrowing by BC Hydro, which is currently in the midst of a massive upgrade and refurbishing of its aging network of hydroelectric dams, transmission lines and generating stations.

The Clark government added $2.6 billion in debt to cover the outstanding costs of the twinning of the Port Mann Bridge, and another $2.1 billion for other road and bridge projects around the province.

The education sector incurred $1.5 billion worth of new debt, mostly for building new schools or earthquake-proofing old ones. The Liberals added a further $1.1 billion in debt to cover the provincial share of new hospital construction since Clark took office.

The rest, borrowings of another billion or so, funded construction of government buildings, social housing, the new roof on BC Place Stadium, and miscellaneous capital projects.

Infrastructure, as it is known. And certain to continue to soak up the borrowed dollars, given the myriad pressures on government to spend, as underscored by a couple of recent snapshots from the health sector.

“Patients have flooded Surrey Memorial Hospital’s new emergency department, raising concerns the nine-month old facility may already be over capacity,” as The Vancouver Sun reported on the front page one day last week.

This for a facility, part of a $512-million expansion at the Surrey hospital, where the premier herself cut the ribbon when it opened last Oct. 1. Since then, “the number of patients seeking treatment at Surrey’s ER has jumped 27.5 per cent,” according to the story by my colleague Rob Shaw.

Half a billion dollars on an upgrade and the centrepiece of the new facility is full before the year is out? Hard to believe, but there it was in the data from the Fraser Health Region.

Two days later, the Victoria Times Colonist produced more evidence of the unrelenting pressures for capital spending in the health care system.

“Construction started this week in Campbell River and Courtenay on two new North Island hospitals costing a total of $606.2 million,” wrote the paper’s Carla Wilson. “The hospitals are scheduled to begin accepting patients in the fall of 2017.”

The story went on to note that a consultant had recommended construction of a single facility, located between the two communities.

But after a massive public outcry, the health authority went with the option of a 153-bed facility in Courtenay and a 95-bed hospital in Campbell River.

All part of a $9-billion capital program in the health care sector alone since the B.C. Liberals took office in 2001. In addition to the above-mentioned facilities, there are new or expanded hospitals in Kamloops, Kelowna, Vernon, Burns Lake, Nanaimo, North Vancouver, Fort St. John, and Haida Gwaii. Plus the new cancer centre in Prince George, and the makeover for B.C. Children and Women’s Hospital in Vancouver.

Not costed or scheduled are sought-after replacements for Royal Columbian, St. Paul’s and Burnaby hospitals, among others.

Never mind the capital projects shopping lists in other sectors, including transit expansion, the bridge to replace the Massey tunnel, the myriad schools not yet given a seismic upgrade, or — to mention an example snatched from the week’s headlines — the estimated $9-billion cost of shoring up the dikes along the Fraser River.

Given all those pressures, the government won’t be shed of its propensity to borrow and spend in the capital sector any time soon. In his briefing on the public accounts this week, Finance Minister Mike de Jong did reference the few years in the past decade when the B.C. Liberals, borne aloft by resource revenues, were able to fund capital construction entirely from operating surpluses.

But there’s none of that in the current fiscal plan. On the contrary, de Jong is projecting that the province will add a further $7 billion to the provincial debt over the next three years, topping out at $68 billion in time for the next election.

And there perhaps, is the next-time slogan for the Liberal campaign bus in this sequel-happy age: “Debt Free 2 — This Time We Mean It.”

Comments

We encourage all readers to share their views on our articles and blog posts. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, and please keep your comments relevant and respectful. If you encounter a comment that is abusive, click the "X" in the upper right corner of the comment box to report spam or abuse. We are using Facebook commenting. Visit our FAQ page for more information.

Share

Vaughn Palmer: ‘Debt-free B.C.’ a fantasy, for now

Video

Business Videos

Best of Postmedia

“And I saw when the Lamb opened one of the seals, and I heard, as it were, the noise of thunder, one of the four beasts saying, ‘Come and see.’ And I saw, and behold a white elephant, and he that sat upon him had a crown, which he wore atop his fiery hair, and […]

Millennials, amirite? They’re nothing but Instagram-happy, emoji-LOL-ing, mannequin-challenging navelgazers. Or so the theory goes. How can they put their pants on one leg at a time, like everyone else, when they’re sausaged into skinny jeans? Yet when it comes to […]

An Ottawa judge has thrown out a romance fraud case that has taken more than four years to go to trial, ruling that the excessive delay has robbed the accused man of his right to a fair trial. Ontario Superior Court Justice Kevin Phillips on Friday stayed the case against Kevin Bishop of Ottawa, who had […]

Almost Done!

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.

Postmedia wants to improve your reading experience as well as share the best deals and promotions from our advertisers with you. The information below will be used to optimize the content and make ads across the network more relevant to you. You can always change the information you share with us by editing your profile.

By clicking "Create Account", I hearby grant permission to Postmedia to use my account information to create my account.

I also accept and agree to be bound by Postmedia's Terms and Conditions with respect to my use of the Site and I have read and understand Postmedia's Privacy Statement. I consent to the collection, use, maintenance, and disclosure of my information in accordance with the Postmedia's Privacy Policy.